HCL quarterly profit plunges 22%

Wednesday, 23 October 2002, 07:00 Hrs
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NEW DELHI: HCL Technologies, one of India's leading software development and services major, Tuesday said its net profit in the July-September quarter fell a lower-than-expected 22 percent as key clients cut orders.

The company's net profit in the quarter ended September as per the U.S. accounting rules touched 760.30 million, down from 978.6 million logged in the same period last year, said a company statement issued here.

The New Delhi-based HCL Technologies' gross revenue, however, rose 19 percent to 4.42 billion in the July-September first quarter, up from 3.72 billion in the quarter ended September last year.

The company added 20 new customers added during the July-September quarter, including two Global 500 clients. "As a part of client rationalisation programme 33 clients were dropped, taking the total to 349 clients," it said.

The new customers include Australia's National Foods Ltd., the U.S.-based GERS Retail Systems, a leading European automotive company and one of the largest retail groups in Australia.

HCL Technologies, India's fifth-largest software exporter, also added 693 employees in its first quarter, taking the total manpower strength to 7,156.

"Our planned strategy to diversify our services portfolio is clearly on course," said Shiv Nadar, chairman, president and CEO of HCL Technologies. "I am confident that we will consolidate these gains and optimise the potential of investments."

HCL Technologies' customer contact centre units reported a loss of 49.8 million against 3.1 million profit in the fourth quarter ended June this year.

Shares of HCL Technologies, which has operations spanning 25 locations in 14 countries, crashed 17.9 percent to 174.65 after the company announced a disappointing quarterly performance.
Source: IANS
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